During his appearance at the Bitcoin 2024 conference in Nashville, US Republican Presidential candidate Donald Trump made a bold promise to the crypto community. He stated that if elected, his administration would enforce a policy mandating the US government to retain “100%” of the Bitcoin it currently possesses or acquires. Trump emphasized the importance of abiding by the cardinal rule of never selling BTC, which resonated well with the attendees who are ardent supporters of the cryptocurrency.
This announcement comes at a time when the US government holds a significant amount of Bitcoin, totaling 213,239 BTC ($14.87 billion) according to data from Arkham Intelligence. Despite previous instances of the government offloading some BTC holdings, Trump’s commitment to preserving all Bitcoin assets could have a bullish impact on the token’s price. The removal of a substantial amount of Bitcoin from circulation would likely drive up demand and subsequently boost its value in the market.
Most of the US government’s Bitcoin holdings were acquired through seizures from the dark web marketplace Silk Road, founded by Ross Ulbricht. Trump’s promise to commute Ulbricht’s sentence if elected adds another layer of intrigue to the situation. However, it is improbable that Ulbricht will be able to reclaim the 50,591 BTC recovered from a hacker who targeted him and Silk Road in the past. This is due to Ulbricht forfeiting claims to these funds in 2022 to settle an outstanding money judgment.
Prior to the Bitcoin conference, Trump had already voiced his support for Bitcoin and cryptocurrencies, generating optimism among investors. Speculations emerged that a Trump victory in the US presidential elections could propel Bitcoin to new heights, with predictions like Standard Chartered’s $150,000 year-end target if he assumes office. Additionally, a Trump administration is anticipated to introduce clearer and more favorable regulations for the crypto industry. This stands in contrast to the SEC’s current enforcement-focused regulatory approach, which has dampened market sentiment.
Donald Trump’s promises regarding the US government’s Bitcoin holdings and his stance on crypto regulations have the potential to have a substantial impact on the cryptocurrency market. While his proposals may instill optimism and drive up prices in the short term, the long-term implications remain uncertain. As the crypto community eagerly awaits the outcome of the US presidential elections, the relationship between politics and the digital asset landscape continues to evolve.
